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7 juin 2017 · This paper proposes an empirical model of network formation, combining strategic and random networks features. Payoffs depend on direct links, but also link externalities. Players meet sequentially at random, myopically updating their links. Under mild assumptions, the network formation process is a potential game and converges to an ...
of the experiment. While the theoretical literature on network formation games has focused on one-shot, simultaneous move games of full information (and even there, characterizations of equilibria are difficult and elusive), our experiments investigate a formation game of continuous, asynchronous moves and partial information.
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Most of Lectures 6—7 studies the simplest and best-known random graph model: Erdos-Renyi (ER) random graphs. The ER random graph model is simply that, given n nodes, each possible (undirected) link forms with independent probability. ∈ (0, 1). Natural and important mathematical benchmark or starting point for analyzing network formation.
SUPPLY NETWORK FORMATION AND FRAGILITY MATTHEW ELLIOTT, BENJAMIN GOLUB, AND MATTHEW V. LEDUC Abstract. We model the production of complex goods in a large supply network. Firms source several essential inputs through relationships with other rms. Relation-ships may fail, and given this idosyncratic risk, rms multisource inputs and invest to
1 mai 2024 · As a complement, we explore the role of homophily in network formation. 1 Specifically, agents are distributed over a circle, in which the shorter the distance between two agents the more similar they are. Each agent can only form link with her 2 h neighbors. We find that if linking constraint, denoted as k, is small enough with respect to 2 h ...
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